NBA owners, players meet for 16 hours, back at it Wednesday

1 Comment

NBA owners and players sat across the table from each other for 16 hours on Tuesday, a meeting that bled past 2 a.m. Wednesday. The good news is that after a handful of hours off the two sides will be back at it at 10 a.m. on Wednesday. But reports are saying not a lot of serious progress was made.

Officially we don’t know much was accomplished. After the full day of talks, federal mediator George Cohen asked both sides to refrain from speaking to the media, and both sides abided by that. So there were no press conferences, no comments.

The fact that they are meeting again on Wednesday — a day that NBA Commissioner David Stern had said the two sides would not meet because of the owners Board of Governors’ meeting — is a good sign. It means there had to be enough progress for both sides to return to the negotiating table.

But don’t get too optimistic. Our man A. Sherrod Blakely of CSNNE.com tweeted a source in the room told him there was progress made but a long way to go. Other reports said the progress had been on the little things but not key issues.

There was what both sides had previously described as a “gulf” between them, which meant it was going to take more than a day to bridge that gap.

The league has already cancelled the first two weeks of the season and if these talks stall out more games will be lost.

One sticking point reportedly remains the luxury tax — the owners want a much more steep one that would prevent the kind of spending that the Lakers and Mavericks have done in recent years. The tax on the old system was $1 for every dollar spent over the tax line ($70 million last season). The owners’ proposed tax would start at $1.75 for every dollar over the line and increase by 50¢ every $5 million. For example, the Lakers luxury tax last season of $20 million would have jumped to about $53 million.

The players have resisted that steep a tax, calling it a hard cap by another name.

The other sticking point had been the division of basketball related income. In the old system the players got 57 percent but they had formally offered to come down to 53 percent (and rumors have been they would go another point lower, although big name stars have tried to shoot that down). The last formal offer from the owners was to give the players 47 percent, but reportedly they might go as high as 50 percent.

As each percentage point represents $40 million, even a three percentage point difference is $120 million a year and more than a $1 billion over the life of a proposed deal.

But at least the sides will continue to talk Wednesday, which should provide at least a little hope for hoops fans.

Report: Bucks trying to trade Tony Snell or Ersan Ilyasova with draft-pick sweetener

AP Photo/Kathy Willens
Leave a comment

Coming off their best season in decades, the Bucks will send four quality players into free agency – Khris Middleton, Brook Lopez, Malcolm Brogdon and Nikola Mirotic.

How will Milwaukee keep its core intact?

Maybe by unloading Tony Snell ($11,592,857 salary next season, $12,378,571 player option the following season) or Ersan Ilyasova ($7 million salary next season, $7 million unguaranteed the following season).

Marc Stein of The New York Times:

With Bird Rights for Middleton, Brogdon and Mirotic, Milwaukee faces no salary-cap restrictions on keeping just those three. The only cost is real dollars, including potential luxury-tax payments.

It’s trickier with Lopez. Giving him the non-taxpayer mid-level exception (which projects to be about $9 million) – the most they can pay without opening cap space – would hard-cap the Bucks at a projected team salary of about $138 million. That could be a difficult line to stay under.

Unless Snell or Ilyasova are off the books.

Neither player has a desirable contract, which is why Milwaukee is shopping them with a draft pick attached. But both can still contribute. Ilyasova is a smart veteran power forward who shoots well from outside and takes a lot of charges. Snell is also a good outside shooter, and though his all-around game is lacking, there’s a dearth of helpful wings around the league.

The Bucks have the No. 30 pick in Thursday’s draft. They could select on behalf of another team then trade the draft rights. The Stepien rule applies only to future drafts.

Beyond that pick, Milwaukee is short on tradable draft picks. The Bucks have already traded two protected future first-round picks and their next three second-rounders. Dealing another first-rounder would require complex protections. Perhaps, a distant second-rounder is enough.

It’s important for Milwaukee to figure this out. Giannis Antetokounmpo likes this core group, and everyone is watching his level of satisfaction with the Bucks as his super-max decision approaches.

Toronto police: Report of shooting at Raptors championship parade

Cole Burston/Getty Images
1 Comment

Update: Toronto police:

 

 

The Raptors’ championship parade was interrupted by a scary situation.

Toronto Police:

Bruce Arthur of the Toronto Star:

Especially in large crowds like this, chaos and confusion can spread quickly. Hopefully, everyone is OK.

The scene was quite strange, as speeches were interrupted while people in sections of the crowd fled:

The Raptors are continuing their speeches now.

Report: Nets not extending qualifying offer to Rondae Hollis-Jefferson

Mitchell Leff/Getty Images
Leave a comment

The Nets appear to be on the verge of signing Kyrie Irving. They opened double-max cap space to pursue a second star like Kevin Durant, Tobias Harris or Jimmy Butler.

Brooklyn isn’t going to let Rondae Hollis-Jefferson foil that plan.

The Nets could make Hollis-Jefferson a restricted free agent, giving them the right to match any offer he receives. But do so, they must extend a $3,594,369 qualifying offer. That’s essentially a one-year contract offer he could accept at any time. If he did, he’d count against the cap at $3,594,369. Brooklyn doesn’t want to risk that.

Adrian Wojnarowski of ESPN:

The Nets could still re-sign Hollis-Jefferson. This just prevents him from unilaterally accepting the qualifying offer and jamming up cap space.

But this signals Brooklyn is ready to move on. Hollis-Jefferson, who become an unrestricted free agent after spending his first four years with the Nets, might also be ready.

The 24-year-old Hollis-Jefferson has settled in as an undersized power forward. He’s a switchable defender and active offensively. Playing power forward somewhat covers for his lack of shooting and ball-handling ability, but that can still be exploited.

Why timing of Anthony Davis trade matters so much for Lakers

AP Photo/Jae C. Hong
3 Comments

The Lakers will get Anthony Davis.

That’s clearly the only thing that matters to them.

Not only will they send the Pelicans a massive haul of draft picks and young players, the Lakers could lose significant cap space with the trade’s structure.

Los Angeles and New Orleans can’t complete the reported deal until the league year turns over June 30. Then, the NBA immediately goes into a moratorium in which most transactions aren’t allowed. The moratorium ends July 6. That’s when two main options emerge.

Option 1: Trade July 6

Let’s start with Davis’ trade kicker, a bonus paid to him if traded. Davis’ base salary next season is $27,093,018. His 15% trade bonus could raise his salary $4,063,953 to $31,156,971. Davis could waive all or a portion of the bonus. The Pelicans would pay the bonus, but the Lakers can also include enough cash in the trade to cover the full bonus amount.

The Lakers will send Lonzo Ball, Brandon Ingram and Josh Hart (combined salary: $17,918,965) and the No. 4 pick (which will count about $7 million against the cap) to New Orleans.

Davis’ salary will be between $27,093,018 and $31,156,971 next season, depending on his trade kicker.

Simply, the Lakers’ incoming salary in the trade will be about $2 million-$6 million higher than their outgoing salary in the trade.

That works just fine under the cap rules. The Lakers will have way more than $2 million-$6 million in cap space. As far as salary matching, teams can always trade when they end up under the cap.

So, after this deal, the Lakers would have about $24 million-$28 million in cap space.

But there’s another path that would give the Lakers even more flexibility.

Option 2: Trade July 30

On July 6, if they renounce all their free agents and waive Jemerrio Jones‘ unguaranteed salary, the Lakers project to have about $33 million cap space.

That’s about enough for a max salary for a free agent with fewer than 10 years experience – someone like Kemba Walker, Jimmy Butler, Kawhi Leonard or Kyrie Irving. Or multiple helpful role players.

The Lakers could spend all that money then trade for Davis.

Here’s how they could get Davis after reaching the cap line:

They’d sign the No. 4 pick June 30. (Signing first-round picks is one of the few moves allowed during the moratorium.) He couldn’t be traded for 30 days after being signed. Hence, the July 30 date on this trade. But his actual salary would count toward the trade. Unsigned draft picks count $0 in trades.

In this salary range, the Lakers could acquire 125% of the outgoing salary in the trade plus $100,000. Aggregating Ball, Ingram, Hart and the signed No. 4 pick would allow the Lakers to acquire about $31 million of salary. That covers Davis’ full salary and most, if not all, of his trade bonus.

But why would the Pelicans wait?

That’d mean the No. 4 pick can’t play for them in summer league. There’d also be complications flipping the No. 4 pick to another team.

It’d also tie up a portion their cap space until the trade is completed, as they’re the ones holding the more-expensive Davis through July. Most good free agents will be off the market by July 30.

New Orleans could always reach an unofficial agreement with a free agent then make the deal official after the Lakers trade. But that requires trust, and some free agents might not go for that.

There’s no upside in waiting for the Pelicans. The only question is how much downside.

What’s at stake?

A quick recap:

If the Lakers trade for Davis sooner, they’d project to have $24 million-$28 million in cap space (depending on his trade bonus).

If the Lakers trade for Davis later, they’d project to have about $33 million in cap space.

That extra $5 million-$9 million could go a long way.

What now?

It doesn’t sound as if the Lakers pressed New Orleans to wait until July 30 before accepting the trade.

Adrian Wojnarowski of ESPN:

Tania Ganguli of the Los Angeles Times:

For now, the plan is to execute the trade on July 6, right after the moratorium ends on the start of free agency — and it’s unlikely that will change.

The Lakers could always negotiate with free agents June 30-July 5 then decide. If they want the additional cap space, the Lakers could try to entice the Pelicans with extra draft picks to delay. But that’d make the trade even more costly to Los Angeles.

The alternative might be even more grim – the Lakers not finding worthy players in the first week of free agency. Los Angeles could even view that as a face-saving move to justify the timing of this trade.

But if the Lakers make this trade July 6 then claim they didn’t have good use for an extra $5 million-$9 million in cap space, they’ll only be telling on themselves.